Home Air Conditioners | Tax Credit for New Home Air Conditioners

Tax Credit for New Home Air Conditioners

If you are a home owner and your home air conditioners are 10-years old or older, right now is the time to be looking to replace those units. Don’t wait until they break down. Here are THREE big reasons why you should do it now:

  1. 2010 is the magic date when Freon begins to phase out. No new equipment will be manufactured using freon (R-22) coolant. Once the network news turns this into their hot topic, then you’ll be behind the curve as everyone will be jumping on board and quality installers will be in demand.
  2. If something happens with your job or other circumstances arise that require you to move, it will be much easier to sell a house already configured with PURON air conditioning. It will not add to the value of your home, but in a buyers market it is a strong incentive to choose one property over another.
  3. Some (not all) New Home Air Conditioners will qualify for a tax credit of 30% of the total cost (including installation) up to $1,500 in 2009 and 2010. This is what we will focus on in this post.

In order to qualify for the tax credit, you must purchase and install either a SPLIT SYSTEM with a SEER rating of 16 or higher and an EER rating of 13 or higher, or a PACKAGE SYSTEM with a SEER rating of 14 or higher and an EER rating of 12 or higher. You don’t have to be replacing an older unit to qualify, but if you are you will most likely have to replace your heater too if it acts as the air handler for your home air conditioners. To verify if you are eligible for the tax credit, you will need the MANUFACTURERS CERTIFICATION STATEMENT for the equipment you plan to purchase. This is available through your contractor, or the equipment manufacturers website.

What is SEER and EER?
SEER is an acronym for SEASONAL ENERGY EFFICIENCY RATIO and it measures how efficiently home air conditioners will operate over an entire season. The calculation compares the cooling capacity in BTUs versus the energy in Kws that is consumed over the same time. This is just an FYI, because this calculation is done by the manufacturers and is clearly marked on the unit.

EER or ENERY EFFICIENCY RATIO is pretty much the same thing, but this time it is measured with a constant outside temperature. The number derived is BTU hours per watt and this number is also provided by the manufacturer.

In both cases, the higher the number, the more efficient the equipment is rated. As of January 2006, all home air conditioners sold in the US must have a SEER rating of at least 13.

SPLIT SYSTEM vs PACKAGE SYSTEM
A split system has THREE COMPONENTS, the outdoor cabinet with he condenser and compressor, an indoor cabinet with the evaporator coil, and an air handler that pushes the cool air through the ducts which is usually incorporated into the heater unit. With a split system, air is recirculated within the home.

A package system has all of these components located in one cabinet which is located outside of the home. With a package system, new air is circulated into the home from outside and return ducts are sent outside.

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